Hidden Costs of Buying a Flat in India: Full 2026 List

The hidden costs of buying a flat in India usually add 8-12% to the price of a resale flat and 15-20% to a new under-construction one, as of October 2026. The biggest items are stamp duty and registration (5-8% in most states) and, for under-construction flats, 5% GST. Parking, maintenance deposits and loan fees make up the rest, and almost none of it is covered by your home loan.

Here is the full list, state stamp duty rates, and a worked ₹90 lakh example for both types of flat.

Government charges

Stamp duty and registration

Stamp duty is a state tax on the sale deed. It is charged on the higher of the agreement value and the circle rate (ready reckoner or guideline value) for that location. Indicative rates as of October 2026:

Rates change through state budgets and notifications, and published sources disagree on several states, so confirm the current figure on your state's registration portal (for example IGR Maharashtra, IGRS UP or TNREGINET) before you budget. Stamp duty and registration paid for a house can be claimed within the ₹1.5 lakh limit of old Section 80C, now Section 123 of the Income-tax Act, 2025, but only under the old regime.

GST on under-construction flats

GST is levied on the agreement value after a one-third deemed land deduction, which is why the effective rates are 5% and 1%. Separate charges such as parking, club membership or maintenance billed by the builder can attract GST at different rates. Ask for a GST-wise breakup. The trade-off between the two kinds of property is covered in our guide on under-construction vs ready-to-move flats.

TDS on property purchase

If the price or stamp duty value is ₹50 lakh or more, the buyer must deduct 1% TDS from the payment to a resident seller. This was old Section 194-IA; under the Income-tax Act, 2025 it sits in Section 393(1) from 1 April 2026. It is not an extra cost, but you must deposit it on time and give the seller the TDS certificate, or face interest and late fees. Buying from an NRI seller involves much higher withholding and needs professional help.

Builder and society charges

These are the items most often missing from the advertised price:

• Car parking: often sold separately for covered or stilt parking.
• Preferential location charges (PLC): for higher floors, park or sea facing units, corner flats.
• Club membership and amenity charges.
• Advance maintenance: usually 12-24 months collected at possession.
• Corpus or sinking fund: a one-time deposit for the society's long-term repairs.
• Utility connections: electricity meter, water, gas pipeline and sometimes DG backup charges.
• Legal and documentation charges billed by the builder.
• Floor rise charges per square foot for each floor above a level.

Under RERA, the price must be quoted on carpet area, and the builder cannot take more than 10% of the cost as advance before signing a registered agreement for sale. Check the RERA-registered agreement for every charge listed, and refuse anything not in it.

For resale flats, expect society transfer charges, any pending maintenance or property tax dues, and possibly a share of upcoming repair levies.

Loan and professional costs

Read the Key Facts Statement your lender gives you: it shows the processing fee and the all-in annual percentage rate.

Worked example: ₹90 lakh flat in a Maharashtra city

Assume a 1,000 sq ft carpet flat priced at ₹90 lakh, stamp duty at 6%, a ₹72 lakh loan with a 0.5% processing fee, and indicative charges. All figures are illustrative.

So the "₹90 lakh" new flat really costs about ₹1.08 crore before interiors. If the bank lends ₹72 lakh, the buyer needs about ₹36 lakh of their own money, not ₹18 lakh. Plan it with our guide to building a home down payment fund.

These one-time costs also affect your loan decision. Putting ₹5 lakh more towards charges means ₹5 lakh less down payment, and the EMI calculator shows that ₹5 lakh more borrowed at 8.5% for 20 years adds about ₹4,340 to the monthly EMI.

Recurring costs after you move in

• Monthly maintenance: if it exceeds ₹7,500 per flat per month and the society's turnover is above ₹20 lakh a year, 18% GST applies to the whole amount, as of October 2026.
• Property tax to the municipal body, payable every year.
• Home insurance, repairs and periodic painting.
• Interiors: modular kitchen, wardrobes and fittings often cost several lakh and are rarely financed by the home loan.

Checklist to avoid surprises

1. Ask the builder for an all-inclusive cost sheet with GST shown line by line.
2. Check the circle rate: stamp duty is charged on the higher of circle rate and price.
3. Confirm whether the state gives a concession for women buyers and whether joint ownership qualifies.
4. Verify the project on the state RERA website and match charges with the registered agreement.
5. For resale, get a no-dues certificate from the society and check the encumbrance certificate.
6. Deduct and deposit 1% TDS if the value is ₹50 lakh or more.
7. Keep every receipt: stamp duty and registration can count under Section 123 (old 80C) in the old regime.

Key takeaways

• Hidden costs add roughly 10% to a resale flat and up to 20% to a new under-construction one in our illustrative ₹90 lakh example.
• Stamp duty is commonly 4-8% of the higher of price and circle rate, plus about 1% registration, as of October 2026; confirm your state's current rate.
• GST applies only to under-construction flats: 5%, or 1% for affordable housing.
• 1% TDS on purchases of ₹50 lakh or more is the buyer's responsibility, now under Section 393(1) of the Income-tax Act, 2025.
• Most of these costs come from your savings, not the home loan.